Whirlpool (China) (SH:600983) Xin Lang Cai Jing·2025-07-08 02:13Core Viewpoint - Whirlpool (China) has successfully transformed its business strategy under the ownership of Galanz, shifting focus from domestic competition to overseas markets, resulting in significant profit growth and operational efficiency improvements [2][4][11]. Financial Performance - In the first half of this year, Whirlpool (China) expects a net profit of approximately 205 million yuan, a year-on-year increase of about 559%, with a net profit of 194 million yuan after excluding non-recurring gains, reflecting an 857% increase [3]. - For the fiscal year 2024, the company reported total revenue of 3.649 billion yuan, a decline of 8.85%, but net profit increased by 148.72% to 202 million yuan, and net profit excluding non-recurring items rose by 74.80% to 179 million yuan [3][4]. Strategic Shift - The company has strategically abandoned direct competition in the Chinese market, focusing instead on contract manufacturing and expansion in overseas markets, particularly for its major shareholder, Whirlpool USA [4][11]. - The revenue from overseas markets accounts for 93.85% of total revenue, indicating a significant pivot towards international operations [6]. Cost Control and Management - Whirlpool (China) has implemented extreme cost-cutting measures, including a flat management structure where the president oversees all major operations, leading to enhanced efficiency [6][9]. - The management team is notably lean, with minimal executive positions, which allows for better cost management but may impact team development [9][8]. Client Dependency - The top five clients account for 90.59% of total sales, with a significant portion of sales coming from related parties, indicating a high dependency on a limited number of customers [6][7]. Product Development - The company is focusing on developing new products tailored for the U.S. and South American markets, including a series of high-standard dishwashers and innovative washing machines [11].